by Deborah Owens,

It’s graduation time and we are extremely proud. Our daughter Olivia is graduating from college. We wrote our final check for room and board last month.  Sending two kids to college over the past ten years has been a serious financial commitment that could not have been accomplished without investments made years ago. Sadly, far too many of us are not saving for college and that lack of action can lead financial trouble.

A few years ago I counseled a couple that was nearing retirement and the husband had recently been laid off. They were relying on the wife’s income and it was not enough to pay their living expenses and debts. After reviewing their situation I discovered that they were still paying off credit cards and student loans for their son who graduated from college more than fifteen years ago. I asked them if their son had offered to help them pay anything towards the debt over the years. Their reply was, “He has his own family and bills to pay.”  All over America this scenario is being repeated and couples nearing retirement are suffering the consequences. That encounter was a “pivotal” moment for me and changed my whole perspective on kids and college funding.

Contrary to what many of our children have come to believe, a four-year fully funded college education is not a birthright. In order for our children to truly value higher education we must set high expectations and hold them accountable. Their performance throughout their academic career will determine what schools they are accepted into and what type of financial support they receive. Recent statistics have revealed that far too many middle-income students are performing at marginal levels. Our children have to understand that the person who has the most knowledge wins in the global marketplace. Parents who are unwilling to demand accountability could wind up with costly debts and no return on their investment.

Here are some ground rules that parents need to establish to ensure their children value the investment of education without jeopardizing their own financial future.

Wealthy Life Lesson #1

Good grades and high SAT scores=Scholarships and entry into the University of their choice. There are millions of dollars in merit -based scholarships, which families from all economic backgrounds can qualify for. Have high expectations and hold your children accountable.

Most scholarships require an essay to be written which is excellent training for future college students.

Wealthy Life Lesson#2

Most states have implemented college savings programs also called 529 plans that allow you to pre-pay and or save for college tuition (visit www.collegesavings.org .)The younger the child, the more affordable these plans are. Rather than gift cards at birthdays or holidays, tell relatives and friends about the college fund you have established and encourage them to make deposits on behalf of your child.

Wealthy Life Lesson #3

Whether you had an opportunity to save for college or not visit www.fasfa.gov and complete the financial aid form. Your son or daughter may qualify for grants, subsidized or unsubsidized loans. Let your child be responsible for paying these student loans and contribute what you can afford to their education.

Higher learning leads to greater earnings which make student loans a good investment. Our daughter and son received unsubsidized student loans in addition to the savings that we invested in their education and they are responsible for paying it back. I remember my son telling me he realized that if he missed class he would be wasting his money. Now that’s what I call higher learning.

Deborah Owens is the Wealth Coach. She is the author of three books; most recently critically acclaimed, A Purse of Your Own: An Easy Guide to Financial Security, published by Simon and Schuster. Owens is a 20-year financial services industry veteran and former vice president with Fidelity Investments. Ms. Owens is a media personality who has been a contributor to CNN, ABC News Now, Shape, Essence Magazine, Ebony, Black Enterprise and is host of Wealthy Radio, which airs on WEAA an NPR affiliate in Baltimore, MD.   Visit her website athttps://deborahowens.com for more wealth building tips and tools.